Google Confidential and Proprietary 1

Happy Price TestingGetting to the Holy Grail of Marketing

Rachit DayalLead Consultant, Happy Marketerrachit@happymarketer.com http://twitter.com/rachitdayal

Google Analytics Master Class 2010 2

How much can you charge for your product?

The optimal price is the holy grail of trading / sales / marketing / business

Even prehistoric man wondered how many pails of grain he could get for that goat he was trading away!

Google Analytics Master Class 2010

What’s the impact of price on profit?

3

Google Analytics Master Class 2010

Current Methods of Price Testing

Strategic “Guessing” Not based in fact, mostly guesswork

Customer Surveys Honestly’s a problem – they do different from what they say

In-Store Tests Very expensive, could lead to backlash

Online Price Testing Affordable, quick to implement Accurate data compared to other mediums

4

Google Analytics Master Class 2010

The Story of Genopal

5

72 hrs to Launch of New Product• Weren’t sure how much to price

US$24.95 ? US$29.95 ? US$39.95 ?

1. Home PageWhere all users start out

and explore the site

2. Buy PageWhere all come to read

about pricing details

3. CheckoutBeginning of the Shopping

Cart & Confirmation Process

Google Analytics Master Class 2010

Vary only one thing – the price

6

Buy It Now. Only $24.95

Buy It Now. Only $29.95

Buy It Now. Only $39.95

Google Analytics Master Class 2010

The Price Testing Results …

7

$24.95 $29.95 $39.95

0%

20%

40%

60%

80%

100% 100%

50%

5%

Items Sold

$24.95 $29.95 $39.95

0%

20%

40%

60%

80%

100% 100%

60%

8%

Revenue

2X Sales at $24.95and 66% more revenue

Google Analytics Master Class 2010

A Subsequent Marketing Test Told Us …

8

Google Analytics Master Class 2010

Summary of Testing Results

• Home Page Headline Best Headline led to performed 42% better than the original headline

• Home Page Image Best Image led to performed 27% better than the original image

• Overall Results Conversion Rate went up from 2.6% to 3.8% (32% boost) Price changed from 29.95 to 24.95 (led to 2X more sales)

9

Google Analytics Master Class 2010

Summary – How To Price Test

1. The Process Relied on Online Testing & Google

Website Optimizer – faster than offline Show the price in very few places Vary only the price –keep as many other

things constant as possible

2. The Result The data was probably not statistically

significant – too little time Provided some preliminary market

intelligence about price Gave us a good idea about what

headlines and images appealed

10

Buy It Now. Only $24.95

Buy It Now. Only $29.95

Buy It Now. Only $39.95

Google Analytics Master Class 2010

Lessons about Getting Good Data

11

1. Be Patient, confidence in results take time (wait for green bars)

2. Start with the most High Traffic Pages (home page, ad landing pages)

3. Focus on big things that could really make a difference Page

Format

Price

Home Page Message Call To

Action

Google Confidential and Proprietary

Thank You!

http://www.HappyMarketer.com/Rachit@HappyMarketer.comhttp://twitter.com/rachitdayal

12